HOA Management Company

1

HOA Management Company:

/

Courtney and Courtney

4740 Flintridge, Suite 201

Colorado Springs, CO 80918

Phone: (719) 260-8216

THE RIDGE Condominiums

Homeowners Association

Rules and Regulations

Effective Date: 1 January 2014

HOA Rules and Regulations

Record of Changes

Date This Change Takes Effect / Description or Title of This Change / Section of Rules and Reg’s Affected by This Change / Type of Change
(Full doc. replacement; Section/subsection change; or
New addendum)
Original: 6/10/1985 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Original document
November 11, 2001 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Original Rules and Regulations dated 6/10/1985 / Full document replacement
June 22, 2010 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Rules and Regulations dated 11/11/2001 / Full document replacement
November 30, 2010 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Section 3(H) of the 6/22/10 revised Rules and Regulations / Section change
December 21, 2010 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Section 6 ¶2 of the 6/22/10 revised Rules and Regulations / Addition to Existing Section
January 1, 2014 / Rules and Regulations of The Ridge Condominiums Homeowners Association / Rules and Regulations dated 12/26/2010 / Full document replacement
June 17,
2015 / Rules and Regulations of the Ridge Condominiums Homeowners Association
Addendum 1. / Section II. Part 1. & Enclosure 1. / Add a 2nd paragraph, Add Item 50.
January 27, 2016 / Rules and Regulations of The Ridge Condominiums Homeowner Association / Section II. Enclosure 1.
6. Maintenance
Enclosure 2. / Enclosure 1.
Add Item 51,
Add sentence after Item 51
6. Maintenance
Delete last two sentences of 2nd paragraph
Enclosure 2
Add sentence after Item 66

TABLE OF CONTENTS

INTRODUCTION

SECTION I – COMPLIANCE WITH STATE LAW AND GOVERNING DOCUMENTS

EXHIBIT A – Assessment Collection

EXHIBIT B – Conflicts of Interest

EXHIBIT C – Meetings

EXHIBIT D – Violations and Fines

EXHIBIT E – Record Rule

EXHIBIT F – Reserve Studies and Investing Association Reserves

EXHIBIT G – Adoption and Amendment of Rules

EXHIBIT H – Procedure of Addressing Disputes

SECTION II – COMMUNITY RULES

1. Management

2. Architectural Control Committee

3. General Rules

4. Snow Removal Policies

5. Insurance

6. Maintenance

INTRODUCTION

RULES AND REGULATIONS

OF

THE RIDGE CONDOMINIUMS HOMEOWNERS ASSOCIATION

In compliance with the requirements of the Colorado Non-profit Corporation Act and new legislation from 2013 and THE RIDGE DECLARATIONS dated June 10, 1985, and Article IV, paragraph 2(b) of the Bylaws, the Board of Managers has adopted the following policies and procedures, referred to as “Rules and Regulations”. It is a document that is intended to be modified over time, to reflect changes required by new state laws and changes adopted by the Homeowners Association (HOA) Board of Managers. A preceding page, titled “HOA Rules and Regulations Record of Changes” will be maintained to record all changes to the Rules and Regulations. All previous versions of these Rules and Regulations are hereby superseded by this document dated1 January 2014. This also replaces previous related policy attachments to the Rules and Regulations. Future additions and changes to the Rules and Regulations must be recorded on the preceding Record of Changes page.

General:

These Rules and Regulations are binding on all Owners, tenants and guests. They are intended to be consistent with the Declarations, Articles of Incorporation, and any officially adopted Resolutions. Those documents will take precedence in the event of any apparent conflict.

The Ridge’s management company will provide a complete copy of the Rules and Regulations to homeowners upon purchase of their condominium. Changes to this document will also be distributed as they occur. A copy of the Declarations, the Articles of Incorporation, or the Bylaws will be made available by the HOA management company upon request.

This document is divided into two sections. Section I outlines rules and regulations related to compliance with state law. Section II outlines rules and regulations related to daily operations at the Ridge.

SECTION I – COMPLIANCE WITH STATE LAW AND GOVERNING DOCUMENTS

EXHIBIT A

Assessment Collection

1. Owner Responsibility

a. Assessments are vital to fund the operations of the Association. The Association has adopted this rule (the “Rule”) to promote and protect its financial strength for the benefit of all Owners. Owners are responsible for paying Assessments as provided in the Association’s Governing Documents which include the Association’s recorded Declarations, its Articles of Incorporation, its Bylaws and its Rules and Regulations (collectively “Association’s Governing Documents.”) In addition, Owners may have a statutory duty to pay under certain provisions of the Colorado Common Interest Ownership Act (CCIOA) to the extent that statue applies.

b. Owners have a duty to read, understand and comply with the Association’s Governing Documents, and in addition, the CCIOA to the extent applicable.

c. Owners are responsible for contacting the Association, and for making arrangements for the delivery of all payments to the Association, whether by mail or direct deposits. Owners must notify the Association in writing of any change in their mailing address or status within 15 days of such change. The Association shall not be liable for any errors or omissions in any billing address or payment statement to the Owner.

d. Owners are encouraged to use direct deposit of monthly Assessments to avoid late charges, payment disputes, or other problems. Arrangements should be made by contacting in writingthe Association’s Registered Agent (“Registered Agent”) whose name and address (the “Registered Address”) are shown on the record of the Colorado Secretary of State’s website.

e. Checks containing a restrictive endorsement on the back may, at the option of the Association, either (i) be returned to the Owner and the amount tendered shall be considered unpaid, or (ii) be deposited without waiving any of the rights and remedies of the Association to unpaid sums, whether or not the restrictive endorsement is crossed out.

2. Due Date Interest and Late Charges

a. The Association’s Annual Common Expense Assessment shall be due and payable as provided in the Association’s Governing Documents, and unless otherwise provided, monthly Assessments shall be due on the first day of each month, commencing January 1, 2014,provided however, the Board may accelerate monthly Assessments under certain circumstances, and further, special Assessments, fines, fees, and other charges shall be due on the date specified in any notice thereof.

b. Any payment, which is not received by the tenth day after such payment is due, shall be considered past due and delinquent, and will be charged a “late fee” that is set by the Board, not to exceed 5% of the delinquent amount (currently $10 on monthly Assessments) to compensate the Association for the processing of a delinquent payment, which fee shall be owed by the Owner for each month such Assessment is not paid.

c. In addition to the late fee, the Association shall be entitled to receive any and all costs of collection, attorney’s fees, and interest allowed by the Association’s Governing Documents or any statute or law. The interest rate for delinquent sums is set forth either in the Association’s Governing Documents at 18% per annum, or if not set forth therein, it shall be the highest rate allowed by Colorado law.

3. Returned checks

a. The Association mayimpose an administrative fee or other amount deemed appropriate by the Board, for all returned checks.

b. If notice of a returned check, draft or money order is sent as provided in C.R.S. 13-21-109 and the total amount due as set forth in the notice is not paid with 15 days after such notice is given, the Owner who provided the returned check shall be liable to the Association for collection for three times the face amount of the check, but not less than $100 and any expenses of collecting such sums.

c. If two or more of an Owner’s checks are returned unpaid by the bank within any fiscal year, the Association may require that all of the Owner’s future payments, for a period of one year, be made by certified check or money order.

4. Payment Plan

a. The Association is not a lender, and failure to pay Assessments imposes financial burdens on the other Owners. A payment plan may only be considered for extraordinary circumstances unless otherwise required by law or statute.

b. Any request for a payment plan must be made by an Owner in writing and delivered to the Association’s Registered Agent at the Registered Address. Any payment plan must be a legally binding contract, and the plan must require the Owner to pay all delinquent sums, including late fees, interest, attorney fees and other costs. The payment plan must require that the Owner must keep all monthly payments current and must pay off the entire delinquent amount in payments over a time period agreed by the Board, unless CCIOA requires equal monthly installments of a period of at least six (6) months. For example, if an Owner is delinquent in the amount of $660, that sum may be paid over six months in $110 monthly installments, and in addition, the Owner must pay $220 each month of regular Assessments.

c. NothinginthisRuleprohibitstheAssociation,oraholderorassigneeoftheAssociation'sdebtfrompursuinglegalactionagainstanOwneriftheOwnerfailstocomplywiththetermsofhisorherpaymentplan.AnOwner'sfailuretoremitpaymentofanagreed-uponinstallment,ortoremaincurrentwithregularAssessmentsastheycomedueduringtherepaymentperiod,constitutesafailuretocomplywiththeterms ofhisorherpaymentplan.

d. The Association is not obligated to negotiate a payment plan with an Owner who has previously entered into a payment plan. The Board shall have complete discretion as to payment plans, except as otherwise required by Colorado statute.

e. No payment plan is available if the Owner does not occupy the Unit, and has acquired the Unit as a result of: (1) a default of a security interest encumbering the Unit, or (2) foreclosure of the Association's lien.

5. Notice of Delinquent Assessments

a. The Association may send the Owner a notice of delinquency and may charge for any notices sent to the Owners in connection with such delinquent Assessments, but the Owners are responsible for ensuring that their payments are timely and fully made, regardless of whether notice is sent.

b. When an account is delinquent the first month past the due date, a letter of notification will be sent.

c. When a delinquency reaches the second month past the due date, a letter will be sent with a copy of the account ledger. The HOA management company may send a copy of the “Fair Debt Collection Act” if deemed appropriate.

d. Before the Association turns over a delinquent account of an Owner to a collection agency, or refers it to an attorney for legal action, the Association shall, to the extent required by statute or law, send the Owner a notice of delinquency specifying:

• the total amount due, with an accounting of how the total was determined, which may be shown by enclosing a copy of that Owner's ledger;
• that an opportunity toenter into a payment plan may exist in accordance with Section 4 of this Rule in which case the Owner (if eligible) must contact the Association's Registered Agent, in writing at the Registered Address, to request a payment plan.
• that the name and contact information for the individual, whom the Owner may contact to request a copy of the Owner's ledger in order to verify the amount of the debt, is the Association' s Registered Agent at the Registered Address described above, and;
• that action is required to cure the delinquency, and that failure to do so within thirty (30) days may result in the Owner's delinquent account being turned over to a collection agency, a lawsuit being filed against the Owner, the filing foreclosure of a lien against the Owner's property, or other remedies available under Colorado law.

6. Payment Priority

Regardless of inscriptions or notations on the front or back of the check, all payments shall be applied to outstanding balances in the following order of priority:

a. interest;

b. late charges;

c. attorney fees and costs;

d. returned check charges;

e. past-due Special Assessments, past-due fines, or other charges, if any;

f. currently due Special Assessments, or currently due fines, or other charges;and

g. unpaid Assessments beginning with the oldest unpaid Assessment.

7. Remedies for Collection of Delinquent Assessments

a. The Association may exercise any and all rights and remedies available under the Association’s Governing Documents, or under Colorado law, including without limitation, the Owner's delinquent account being turned over to a collections agency, a lawsuit being filed against the Owner, the filing and foreclosure of a lien against the Owner's property, or other remedies available under Colorado law.

b. In the Board's sole discretion, and to the fullest extent permitted by the Association's Governing Documents and/or Colorado law, in the event at least three installments are past due, the entire Annual Assessment may be accelerated upon at least 30 (thirty) days written notice tothe Owner, so that all monthly installments for the remainder of the Assessment year are immediately due and payable.

c. In accordance with the Association's Governing Documents and/or Colorado statutes, the Association may also deny rights to use Association facilities, voting rights, or other rights in the Association (including but not limited to inspection of records) until all Assessments and other sums are paid in full. In order to be a "Owner in good standing" for purposes of this Rule, and toobtain a release of liens, restoration of voting or other rights, or to terminate litigation, the delinquent Owner must make payment in full of all Assessments and other sums, including sums which arise after the collection process or after the Owner delivers a payment to the Association. The Association shall not be liable for any errors or omissions in any billing address or payment statement to the Owner.

d. In accordance with the Association's Governing Documents and/or Colorado statutes, the Association may (but shall not be required) proceed by filing litigation against any Owner who has not paid his assessment and, without affecting that remedy, may also file a lien against the delinquent Unit, which may be foreclosed as provided in the Association's Governing Documents and/or the CCIOA.

e. In accordance with the Association's Governing Documents and/or Colorado statutes, the tenant in any rental Unit in the Association shall, upon written notice from the Association, pay any delinquent annual or special assessment owed by the Owner of the rental Unit to the Association, and all payments made by the tenant to the Association shall reduce the tenant's obligation to make monthly rental payments to the Owner under the lease by the same amount. Despite such payments, the Association shall not be obligated to perform or incur any obligation under the lease. If the tenant fails to comply with the Association's written notice and to make the payments required, the Owner and tenant shall be subject to all rights and remedies described the Association's Governing Documents, and/or the CCIOA, including the right to request that a court appoint a receiver to manage the Unit.

f. In accordance with the Association's Governing Documents and/or Colorado statutes, the Association may also assign its assessment lien against the delinquent property to a third-party assignee, without recourse or warranty of any kind. The assignee shall assume all responsibility for the enforcement of the assigned lien, and the Association shall not be liable for any actions of said assignee. Assignments shall apply only to Assessments that are owed to the Association prior to the assignment, and shall not assign, release or supersede any claims or lien which the Association may have for Assessments accruing after said date. If an assignee does not pay any Assessments levied after the assignment, the assigned assessment lien shall be subordinate to any future assessment by the Association, and the assignee may not take any actions that would hinder the Association's right or ability to collect those unpaid future Assessments.

8. Association’s Collection Action through its Attorney

a. After a delinquent account has been referred to the Association's attorney, all communication with the delinquent Owner should be handled through the Association's attorney. Neither the manager, if any, nor any member of the Board of Directors have any authority to discuss the collection of the account directly with an Owner after it has been turned over to the Association's attorney unless the attorney is present or has consented to the contact. However, the Association has the option and right to continue to evaluate each delinquency on a case by case basis.

b. Once accounts are turned over to the Association's attorney, Owners shall make payment to the Association at the address of the Association's attorney, and the Association shall be entitled to collect interest at the rate set forth in this Rule from the due date of such payments, as well as reasonable attorney fees, court costs, and all other expenses of collection on said delinquent payment. The reasonable attorney fees incurred by the Association shall be due and payable from the delinquent Owner on the date(s) when such expense(s) are incurred by the Association.

9. Foreclosure of Liens

a. Liens under CRS 38-33.3-316. The Association may have rights and remedies to collect Assessments under the CCIOA, including liens. Any sums expended by the Association for repairs or other actions needed to preserve or protect any abandoned Unit within the Association during a foreclosure against said Unit shall be additional indebtedness secured by the priority lien claim described in CRS 38- 33.3l6(2)(b)(i) and 38-33.3-316(c). The Association, or holder, or assignee, of the Association's lien under CRS 38-33.3-316, whether the holder or assignee of the Association's lien is an entity or a natural person, may only foreclose on the lien if: